Long-term US mortgage rates hit highest levels since 2014

WASHINGTON (AP) — Long-term US mortgage rates climbed again this week, hitting the highest levels since early 2014.

Mortgage giant Freddie Mac on Thursday reported the rate on 30-year fixed-rate loans jumped to an average 4.30 percent from 4.16 percent last week and the highest since April 2014. The average for a 15-year mortgage rose to 3.52 percent from 3.37 percent last week and highest since January 2014.

Rates have surged since the Nov. 8 election of Donald Trump. Investors have bid rates higher because they believe the president-elect’s plans for tax cuts and higher infrastructure spending will drive economic growth and inflation.

And last week, the Federal Reserve, citing improvement in the U.S. economy, raised short-term U.S. interest rates for only the second time in a decade.